Intangible-Intensive Profile Of A Company: The Key To Outperforming
In the era of the knowledge economy intangibles are recognized by investors as pivotal value drivers. This paper proposes an intangibles-based tool for picking companies with value growth potential.Design/methodology/approach
We suggest a model to select companies that effectively use unique intangibles (in contrast to the generic intangibles). To test whether these results can be explained by skill we implement a bootstrap procedure. Companies that are able to use unique intangibles efficiently are combined in a portfolio.Findings
Only 22% of companies have the skills to use unique intangibles, but all of them are characterized by the efficiency of their use. The created portfolio demonstrates a higher cumulative return, Sharpe ratio and lower drawdown than S&P500. We also find the increasing importance of intangibles for investors during the crisis.Research limitations/implications
Both the created portfolio and the benchmark (S&P 500 index) are analyzed without transaction costs. Also the benchmark construction is based on equal-weighted sum of company M/B ratios.Originality/value
We take into account the quality of intangibles (efficiency of unique intangibles use) while previous research of portfolio forming methods is based on quantity of intangibles.
The main purpose of the research is to answer the question - do patterns of marketing practices (MP) exist in companies of different financial levels? Based on the international methodology of the Contemporary marketing practices project accomplish that data with net income from SPARK database we divided 129 companies by groups of growth rate net income and applying the KNN method analyse existent marketing practices patterns. As a result we find not random distribution, and establish the existence of MP patterns within the context of firm’s financial results. The results of the research can be useful for practitioners in marketing budget optimisation. Moreover, for scholars that will be a new research of marketing practices science, and we will know more about the nature of business marketing. Moreover, the research sheds light how methods of artificial intelligence can be used in management and marketing science.
Purpose: This study investigates the factors that support or obstruct market value creation through intangible capital.
Design/methodology/approach: We explore the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by Market Value Added (MVA). Specifically we analyse the relationship between intangible-driven outperformance of companies, measured by Economic Value Added (EVA) and a number of intangible drivers on macro-, meso- and micro- levels. We suppose that the process of value creation is not only confined to companies’ performances. Our empirical research was conducted on more than 900 public companies from Europe and US during the period 2005-2009.
Findings: Our study establishes that investment attractiveness is affected by intangibles. We found that a company’s experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries’ education level, which appears to be an obstructive condition for intangible-driven value creation.
Research limitations/implications: The study reveals the significance of industry belonging for intangible-driven value creation. Nevertheless, it does not discover the particular characteristics of industry that influence corporate attractiveness for investors. These issues could be addressed in future research.
Practical implications: Our findings extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making.
Originality/value: The study emphasizes the holistic framework of market value creation by analysing a number of strategic crucial factors in line with Economic Value Added.
This study investigates factors of corporate success over the crisis period of 2008-2009. We advocate the idea that investments in intangibles allow a company to be better off, even if the markets go down. The hypothesis put forward in this paper was tested on a sample of more than 300 companies which operate in developed and emerging European markets, and belong to traditional and innovative industries. The application of statistical tools showed a robust significant link between the companies’ investment decisions and their performance before and during the crisis. This study contributes to empirical corporate finance as it provides evidence that investment restriction is not the best response to an economic recession.
портовый менеджмент, показатели деятельности, анализ эффективности, система учета, распределение издержек, методы анализа деятельности портовой системы
At present many industries reveal tendency for setting up of vertically integrated companies (VIC) the structure of which unites all technological processes. This tendency proved its efficiency in oil industry where coordination of all successive stages of technological process, namely, oil prospecting and production -oil transportation - oil processing - oil chemistry - oil products and oil chemicals marketing, is necessary. The article considers specific features of introduction of "personnel management" module at enterprises of oil and gas industry.
vertically integrated companies; personnel management